Serbia has positioned itself as one of the most attractive destinations for foreign investors, thanks to its strategic location, open market, and a favorable tax framework, including a corporate profit tax rate of 15%. Whether you are planning to relocate, purchase real estate, or start a business in Serbia, there are several flexible options available to you.
In this edition of our newsletter, we bring you a complete overview of the opportunities for entering the Serbian market.
1. Establishing a New Company (DOO)
Foreign individuals and legal entities can be 100% owners and founders of a Limited Liability Company (DOO) in Serbia. The procedure is straightforward and does not require your physical presence, as the entire process can be completed via a special power of attorney and electronic registration.
- Minimum Capital: The legal minimum share capital is only 100 RSD (less than 1 EUR).
- Speed: Registration with the Business Registers Agency (APR) is completed in 3 to 5 working days from the submission of a proper application.
- Asset Protection: Founders are not personally liable for the company’s obligations; responsibility is limited to the amount of their capital contribution.
2. Buying a “Shelf” Company for Immediate Operation
If you cannot afford to wait the standard 10 to 15 working days required to establish a new company and open a bank account, purchasing a “shelf” company is the ideal solution. This is a company that is already formally registered, has an open bank account, and has fulfilled initial legal obligations, but has never conducted any business activities.
- Advantages: It allows market entry in just 2 to 5 working days and provides established credibility due to the formal age of the company.
- Precautions: Before purchasing such a company, a detailed Due Diligence (legal, tax, court, and banking) is mandatory to protect the buyer from any potential hidden liabilities of the previous owner.
3. Mergers & Acquisitions (M&A)
The Serbian market is highly open, allowing foreigners to purchase shares in existing operational companies under the same conditions as domestic entities, except in specific restricted industries such as the military, financial sector, or gambling. Purchases can be structured either as a share transfer (where you take over the entire business, rights, and obligations) or as an asset purchase.
4. Buying Real Estate and Agricultural Land (The DOO Solution)
While foreigners can relatively easily purchase apartments and commercial spaces based on the principle of reciprocity, the Law on Agricultural Land explicitly prohibits foreign physical and legal entities from owning agricultural land in Serbia.
There is a very strict exception under the Stabilization and Association Agreement for citizens of the European Union (EU), who can acquire up to 2 hectares of privately owned agricultural land. However, they must meet rigorous conditions, such as having at least 10 years of permanent residence in the local municipality, actively cultivating the target land for at least 3 years, and holding a registered agricultural estate for at least 10 uninterrupted years.
Because these direct ownership conditions are extremely restrictive, the most elegant workaround is establishing a DOO in Serbia. A company registered in Serbia, even if 100% foreign-owned, is treated as a domestic legal entity. This means that your newly established DOO or purchased shelf company can freely purchase and own agricultural land, forests, and all other types of real estate throughout Serbia.
5. Temporary Residency and the Single Work Permit
A foreigner does not need a residence or work permit just to be the owner of a company in Serbia. However, if you wish to live in Serbia and work as the director of your company, the state offers a streamlined path to residency through self-employment. Serbia issues a Single Permit (Jedinstvena dozvola), which unifies both the residence and work permits into one document.
- The application is submitted exclusively electronically via the portal for foreigners.
- This permit is issued based on self-employment and can be approved for up to 3 years, with the possibility of extension.
For a secure market entry and the protection of your investments, it is always recommended to hire local legal and financial advisors who will guide you through Due Diligence and administrative procedures.
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